Mortgage lenders

The Government has agreed with mortgage lenders that they will offer repayment holidays of 3 months to households in financial difficulty due to COVID-19.  This will also apply to landlords whose tenants are facing financial difficulties because of the virus.  The offer of a payment holiday can be made available to customers who are up to date with payments and not already in arrears.

If you are a private or social tenant experiencing financial difficulties because of COVID-19, the Scottish Government will ensure that you do not face the threat of eviction for up to 6 months.  At the end of the period, landlords and tenants will be expected to work together to establish an affordable repayment plan.

Interest will still be charged during the 3 month repayment holiday but will be added on to the total cost of your mortgage and factored into payments when they restart.

Applications

Applications for mortgage holidays were due to close on 31st October 2020, but this facility will remain open for borrowers.  The Financial Conduct Authority will provide further details in November.  However, borrowers who have been impacted by Covid-19 and have not yet had a mortgage payment holiday will be entitled to a 6 month holiday and those that have already started a mortgage payment holiday will be able to top up to 6 months without this being recorded on their credit file.